Investors have strict criteria for what they look for in a manufacturing investment or acquisition. Your standards should be just as high. In this article, I’ll unpack 6 critical questions to ask an investor or acquirer of your manufacturing business.
Although manufacturers seek investment for different reasons, either to facilitate growth or retirement, there is commonality in what you should seek in an investor. If you’re a successful lower-middle-market manufacturing company, you likely receive multiple letters every month from those seeking to acquire all or part of your company.
Here are 6 Critical Questions to Ask an Investor or Acquirer:
- Does the investor have specific industry experience?
- Do they have a proven track record of growing businesses?
- Can they add to your company what it might lack (sales, marketing, strong financial reporting, etc.)?
- Will they over-leverage the company, thus putting its future in jeopardy?
- Will they keep your staff and provide strong growth opportunities for them?
- How do you know if the price one investor or acquirer offers you is appropriate?
The point is that if you’re giving up equity, you need to get more than money. You should aim for whatever your manufacturing company needs to ensure its continuity and success. Additionally, if there is competition among the interested parties, you’ll likely get a better deal and a better investor or acquirer.
Here’s how my firm helps this process:
- We provide manufacturers with a complimentary valuation so they can confidently seek an investment or sale.
- We vet investors and buyers professionally and financially, leaving nothing to chance.
- We eliminate the unqualified and the tire kickers so you can remain focused on your business.
- We don’t just deal with a local market. We work nationally and provide access to the highest quality investors and acquirers nationally. We’ve been doing so for more than 30 years.
Whether you’re seeking investment to facilitate growth or complete retirement, we can help. The process starts with an introductory call that you can schedule HERE.